Staff Reporter

KOZHIKODE: Tile manufacturers in the State will appeal to the Union Government to continue excise duty exemption on clay products, including roofing and flooring tiles that come under the category of clay items and traditional industry.

The excise duty exemption on these items was removed in the Union Budget 2006, presented by Finance Minister P. Chidambaram in Parliament on Tuesday . The exemption had been in force for years.

As per the Budget directive, tile units with annual turnover of Rs.4 crores would have to pay excise duty of 8.2 per cent with effect from March 1. However, there would be excise duty exemption for units that register a turnover of Rs.1 crore.

The Calicut Tile Manufacturers Association at a meeting held here on Wednesday pointed out that the removal of excise exemption would bring hardly any additional revenue earning for the Government. M.A. Abdurahiman, association president, said a memorandum would be presented to the Union Government.